Also known as “comps,” comparables simply refers to recently sold or currently listed properties that are similar, or “comparable,” in style, size and age to the subject property (the one being bought or sold).

Real estate agents and appraisers use the prices of these comps to determine an estimated fair market value of the subject property. Because no two properties are alike, they may add or subtract value from the subject property based on its location and features like fireplaces, a finished basement or an older roof. When you refinance your mortgage, the appraiser will examine comps, as well as inspect the property, to set a valuation.

Whenever possible as a home seller, drive by or go in to view some of the homes on your comps list so that you have a better understanding of your own home’s value.

While they used to not be considered a ‘comp,’ many foreclosed properties are now considered comparables when setting home values.